MCX-Zinc can regain strength

The Zinc futures contract on the Multi Commodity Exchange (MCX) fell to a low of ₹207.3 a kg on Thursday and has reversed higher from there.

The contract has breached an intermediate resistance at ₹215 and is currently trading at ₹216. The near-term view is positive. A rise to test ₹220 is likely in the coming sessions. Whether the contract breaks above ₹220 or not will then decide the next move.

Inability to break above ₹220 and a pull-back decline thereafter can take the contract lower to ₹215 initially. Further break below ₹215 will increase the possibility of the contract extending the fall to ₹210 or even ₹207 again.

On the other hand, if the MCX-Zinc futures contract manages to break above ₹220 decisively in the coming days, it can gain momentum.

Such a break will pave way for a fresh rally targeting ₹230 and ₹235 levels over the medium term. On the charts, the bias is bullish and the possibility is high of the contract breaking above ₹220 in the coming days,

Medium-term perspective traders with a high-risk appetite can go long at current levels.

Accumulate at ₹210. Keep the stop-loss at ₹206 for the target of ₹230. Revise the stop-loss higher to ₹220 as soon as the contract moves up to ₹225.

Note: The recommendations are based on technical analysis and there is a risk of loss in trading